The U.S. existing home sales declined in May down to the lowest level seen over the last 6 months. This is the first indication that the U.S. housing market keeps lagging behind other sectors of the country’s economy. The sales were down by 3.8% reaching 4810 000.
The country’s high unemployment level (around 9%) and tough lending conditions mean that it may take a couple of years to improve the situation in the U.S. housing market. The current steady weakness in the market is the main reason why the Fed Reserve is going to introduce QE3. ]
The average selling price has seen a dramatic decline as opposed to 2010. 31% of all the sold homes are problematic. Obviously, such factors cannot but press the market of new homes. In May the USA’s new home sales declined by 5.3%.
FOREX.
The US Dollar keeps showing weakness against the basket of major currencies. The experts of the Department of Masterforex-V TS explain that the USD index has formed a “double top”, If the MF pivot and sloping channel are broken below (as shown in the picture), the index will keep declining down to May’s low.
In this case the USD index will gain support at 74,54 and around the sloping channel. If the downward scenario is canceled, the price will form wave b(C ). After a bullish FZR the rally will be continued in the form of wave c(C ) Daily, which will encounter resistance at 76,45.
